Robinhood tokenizes practically 500 US shares, ETFs on Arbitrum for EU customers

Robinhood has expanded its tokenization initiative on the Arbitrum blockchain, deploying 80 new inventory tokens previously few days and bringing the entire variety of tokenized belongings near 500.

In line with information from Dune Analytics, Robinhood has tokenized 493 belongings with a complete worth exceeding $8.5 million. Cumulative mint quantity has surpassed $19.3 million, offset by round $11.5 million in burning exercise, signaling a rising however actively traded market.

Shares account for practically 70% of all deployed tokens, adopted by exchange-traded funds (ETFs) at about 24%, with smaller allocations to commodities, crypto ETFs and US Treasurys.

The most recent batch of tokenized belongings contains Galaxy (GLXY), Webull (BULL), and Synopsys (SNPS), analysis analyst Tom Wan mentioned. “Robinhood EU customers now have a wider vary of US Shares, Equities, and ETFs, because of Tokenization,” he famous.

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Blockchain-based derivatives, not actual shares

In June, Robinhood launched a tokenization-focused layer-2 blockchain constructed on Arbitrum, permitting EU customers to commerce tokenized US shares and ETFs as a part of its real-world asset (RWA) growth.

The corporate’s inventory tokens mirror the costs of publicly traded US securities however don’t signify direct possession of the underlying shares. As an alternative, they’re structured as blockchain-based derivatives regulated beneath MiFID II (Markets in Monetary Devices Directive II), in keeping with the corporate.  

The corporate additionally claims the inventory tokens provide 24-hour market entry, no hidden charges past a 0.1% FX cost and the power to start out investing with simply 1 euro ($1.17).

Nonetheless, the rollout has drawn scrutiny. In July, the Financial institution of Lithuania, which regulates Robinhood within the EU, requested clarification on how the tokens are structured. Tenev mentioned the agency welcomes the assessment.

Associated: Following US success, Robinhood eyes growth of prediction markets abroad

Robinhood deepens its crypto growth

Robinhood’s tokenization rollout got here shortly after the brokerage agency launched micro futures contracts for Bitcoin (BTC), XRP (XRP) and Solana (SOL).